Conergy Begins Legal Action Against MEMC For 10-year Solar Wafers Supply Contract

Published: 27-Apr-2009

By: Staff Writer Staff Writer Staff Writer

Conergy AG (Conergy), a Germany-based supplier of solar and other renewable energies, will begin legal action to contest the 10-year contract to supply solar wafers to its plant in Frankfurt agreed with MEMC Electronic Materials, Inc. (MEMC), at the end of 2007. The basis for this legal action is a number of invalid and, in particular, anti-competitive contractual provisions, which Conergy believes render invalid the entire contract.

In order to reach an out-of-court solution, Conergy initiated talks with MEMC at the beginning of 2009. These talks led to an agreement on the financial conditions of the future cooperation, but stalled due to various auxiliary conditions. As it was not possible to find a solution, Conergy will file for the invalidity of the contract by declaratory judgment in New York city.

The current market situation enables Conergy to nevertheless secure silicon supply for its production plant in Frankfurt. Thus the capacity utilization planned for the factory is ensured in order to safeguard supply for Conergy’s sales units with premium modules.

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